Troubled RBS urged to REVERSE branch closures after first shareholder payout in 10 years

Troubled RBS urged to REVERSE branch closures after first shareholder payout in 10 years

THE Royal Bank of Scotland has been urged to reverse the closure of lifeline branches after announcing its first payout for investors in a decade. RBS, still 62 percent owned by the taxpayer following its 2008 bailout, said it would hand shareholders an interim two pence per share dividend.

Royal Bank of Scotland has been urged to reverse the closure of lifeline branches (Image: GETTY)

We still have a lot more to do to achieve our ambition of being the best bank for customers in the UK and Republic of Ireland.

RBS chief executive Ross McEwan

This will be paid out when it completes a $4.9 billion (£3.8 billion) settlement with the US Department of Justice over the sale of pre-crash financial products linked to risky mortgages.

In results for the first-half of the year, RBS posted a 6 per cent fall in pre-tax profits to £1.8 billon, down from nearly £2 billion the previous year.

RBS chief executive Ross McEwan insisted the bank’s turnaround “is almost complete” adding: “We still have a lot more to do to achieve our ambition of being the best bank for customers in the UK and Republic of Ireland.

“However, with our major legacy issues largely behind us, we are able to fully focus on closing this gap.”

She said: “The people remain the majority shareholder in RBS, branches under threat should now remain open.

“These closures could have a devastating effect on local high streets across Scotland - the banks must not put their own profits before the greater good again.”

Jamie Stone, Lib Dem MP for Caithness, Sutherland and Easter Ross, added: “Rather than give money back to shareholders, RBS should be giving something back to the communities who stood by them when times were tough.

Scottish Labour’s economy spokesperson Jackie Baillie (Image: PA)

“The dividends we see being paid out sit ill with customers who have recently had drastically reduced access to banking services.”

The dividend is worth £240 million and the Treasury will receive £149 million because of the UK Government’s stake.

Last month, the government lost £2.1 billion after selling a tranche of RBS shares at 271p each, almost half the 502p a share it paid for them in 2008.

Earlier this week watchdogs declined to take any disciplinary action against RBS for systematically mistreating thousands of businesses.

A cross-party group of MPs warned that banks were effectively “untouchable” after the Financial Conduct Authority concluded that it did not have the powers to tackle RBS over the scandal at its global restructuring group.